OIG Reality Check on Orion Cost and Planning

"Over its life, the Orion Program has experienced funding instability, both in terms of overall budget amounts and the erratic timing of receipt of those funds. In past reports, we noted that the most effective budget profile for large and complex space system development programs like Orion is steady funding in the early stages and increased funding during the middle stages of development. In contrast, the Orion Program's budget profile through at least 2018 was nearly flat and Program officials acknowledged that this funding trajectory increased the risk that costly design changes may be needed in later stages of development when NASA integrates Orion with the SLS and GSDO. In addition, Orion officials noted that the timing of appropriations affected their ability to perform work as planned, with the Program receiving its funding between 4 and 8 months after the start of fiscal years 2012 - 2016. ... Finally, the Program is working toward an internal planned launch date significantly earlier than the Agency's external commitment date or estimates by an independent review board. We are concerned that such an optimistic approach, given the Program's flat budget profile, increases the risk that Orion officials will defer certain tasks, which ultimately could delay the Program's schedule and increase costs."

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NASA OIG: NASA's Management of the Orion Multi-Purpose Crew Vehicle Program\n\n\"Over its life, the Orion Program has experienced funding instability, both in terms of overall budget amounts and the erratic timing of receipt of those funds. In past reports, we noted that the most effective budget profile for large and complex space system development programs like Orion is steady funding in the early stages and increased funding during the middle stages of development. In contrast, the Orion Program's budget profile through at least 2018 was nearly flat and Program officials acknowledged that this funding trajectory increased the risk that costly design changes may be needed in later stages of development when NASA integrates Orion with the SLS and GSDO. In addition, Orion officials noted that the timing of appropriations affected their ability to perform work as planned, with the Program receiving its funding between 4 and 8 months after the start of fiscal years 2012 - 2016. ... Finally, the Program is working toward an internal planned launch date significantly earlier than the Agency's external commitment date or estimates by an independent review board. We are concerned that such an optimistic approach, given the Program's flat budget profile, increases the risk that Orion officials will defer certain tasks, which ultimately could delay the Program's schedule and increase costs.\"

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